TOP 10 OPERATORS 3: SHILLA DUTY FREE
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Big APAC tenders offer Shilla further chance to shine in bustling market
Having anchored its presence at three of Asia Pacific’s gateway airports, tenders at two this year – Incheon and Singapore Changi – present a sizeable opportunity for The Shilla Duty Free to gain further ground on fierce rival Lotte Duty Free. Luke Barras-Hill reports.
ast year was something of a watershed for The Shilla Duty Free (Shilla) with the South
Korean travel retailer notching DF&TR sales of US$5.3bn, TRBusiness learned in conversation with Taeho Kim, Executive Vice President, Hotel Shilla Co Ltd, Travel Retail Business, Korea Division. Based on Shilla’s $4bn haul in 2017 (calculated according to average
exchange rates) reported in last year’s TRBusiness Top 10 Operators report, approximate year-on-year growth for 2018 can be estimated at an impressive +32%. New store openings at Incheon
International Airport’s Terminal 2 and Jeju International Airport buffered Shilla’s domestic presence and for the first time, sales from its overseas operations surpassed $1bn.
Given Shilla and Lotte bore the brunt of THAAD-related turbulence in 2017/2018, it is quite remarkable that South Korea’s duty free market (including domestic duty free sales at Jeju) managed to grow its revenues by 35% to $17.2bn in 2018. Indeed, Shilla posted a 38%
rise in consolidated Q4 revenue to KRW1,071.5bn/$958m with downtown and airport operations growing by 31% and 50%, respectively, year-on-year as a direct result of the recovery in Chinese volumes from Q2 onwards. This uptick was timely, as Shilla
officially had inaugurated earlier in the year six perfume & cosmetics outlets trading under its Beauty&You concept at Hong Kong International Airport (HKIA). The openings following the beauty, fashion and accessories
Openings at HKIA sealed a triumvirate of duty free concessions at Asia’s key airport hubs.
Successful renewals of its Seoul and Jeju (pictured) downtown licences took place this year.
OCTOBER 2019 TRBusiness TOP 10 OPERATORS 23
Above: The five-year L&T operation at Gimpo International Airport began in January.
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